The World Trade Organization: Background and Issues

1, 1995, under an agreement reached during the Uruguay Round of multilateral trade negotiations.The Uruguay Round was the last of a series of periodic trade negotiations held under the auspices of the WTO's predecessor, the General Agreement on Tariffs and Trade (GATT).The WTO is the most important international organization that governs world trade.Decisions are made by the member countries.The WTO has 148 members and 31 observer governments (most of which have applied for membership), and members represent over 95% of world trade.The highest-level decisions are made at the Ministerial Conference, which is the meeting of trade ministers from member countries.The Ministerial Conference must meet at least every two years.The General Council is the body of national representatives that oversees the day-to-day operations of the WTO.The General Council meets approximately monthly.It also meets in two other capacities: it reviews national trade policies, and it oversees the dispute settlement process.Under the General Council are numerous committees, working groups, and other bodies.Assisting the members is a WTO Secretariat that numbers about 600 and is located in Geneva, Switzerland.The top official of the Secretariat is Director-General Supachai Panitchpakdi of Thailand, whose three-year term began on September 1, 2002.Currently, there are four candidates for the position of Director-General, and a final candidate might be presented for confirmation by late May 2005.Trade agreements administered by the WTO cover a broad range of goods and services trade and apply to virtually all government practices that directly relate to trade, for example tariffs, subsidies, government procurement, and trade-related intellectual property rights.The WTO agreements are based on the principle of nondiscriminatory treatment among countries.Some exceptions however, such as preferential treatment for developing countries, are allowed.Other basic principles of the WTO are open information on rules and regulations, negotiated limits on trade barriers, and settlement of disputes under specific procedures.Among the questions asked during debate on U.S. trade policy and the WTO are: To what extent are U.S. trade goals achieved through the WTO's multilateral forum, compared to other means such as bilateral or regional trade agreements or unilateral actions?Can the United States maintain its sovereignty as a member of the WTO? Are U.S. interests served through the WTO dispute process?Should the United States seek broader WTO rules to include nontraditional issues such as labor and the environment?What is the role of Congress in U.S. participation in the WTO?